In the realm of real estate investment trusts (REITs), a behemoth has emerged in the form of Realty Income (NYSE:O), boasting a staggering $68 billion portfolio. While its massive size may seem impressive, some argue that it may ultimately hinder its ability to maximize shareholder value. A potential solution? Breaking it down into smaller, more agile REITs.
As the largest and most highly-rated real estate investor community on Seeking Alpha, High Yield Landlord has been keeping a close eye on Realty Income’s trajectory. With over 2,000 members and a 4.9/5 rating from 500+ reviews, our community has been a go-to source for expert insights and top picks.
Jussi Askola, President of Leonberg Capital, a value-oriented investment boutique, has been studying the REIT landscape and has authored award-winning academic papers on the subject. With a deep understanding of the industry, Askola has built relationships with top REIT executives and has a long position in several REITs, including EPRT, WPC, and ADC.
While past performance is no guarantee of future results, it’s clear that Realty Income’s size and scope may eventually become a hindrance to its growth. By breaking it down into smaller REITs, the company may be able to unlock greater value for its shareholders. As the REIT landscape continues to evolve, one thing is certain – the future of Realty Income will be closely watched by investors and analysts alike.
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